Investment Strategy: How you can earn interest in this guaranteed return scheme without investing a single rupee after 15-year lock-in period

PPF Investment Strategy: For those who prioritise harmless investments and question to turn their wealthiness implicit the agelong term, the PPF is an fantabulous option. Investors tin lend betwixt Rs 500 and Rs 1.5 lakh annually, allowing flexibility based connected idiosyncratic capacity. The PPF matures successful 15 years, presently offering an involvement complaint of 7.1 per cent.

In summation to its charismatic involvement rate, the PPF strategy provides taxation benefits successful 3 ways: connected investment, interest/returns, and maturity. These features marque it a fashionable prime among investors. However, determination are immoderate lesser-known details astir this strategy that you should beryllium alert of:

You’ll Still Earn Interest Even After Maturity

While the PPF strategy matures aft 15 years, if you don’t retreat the wealth aft it matures, there’s nary request to worry. Your funds stay wholly safe, and you proceed to gain involvement connected the deposited amount. This involvement is calculated according to PPF rules, and taxation exemptions inactive apply.

Investors person the flexibility to retreat funds whenever they choose. They tin either instrumentality retired the full magnitude oregon retreat lone a portion, allowing them to payment from aboriginal involvement rates portion keeping the remaining equilibrium successful the account.

Also Read: Power of 10X20X15 SIP Formula: How you tin physique implicit Rs 1.5 crore corpus for your kid by their 20th day — See Calculations

Extension Options with Ongoing Contributions

If you privation to maximise your net and physique a larger corpus, you tin widen your PPF relationship portion continuing to contribute. The relationship tin beryllium extended aggregate times successful blocks of 5 years.

How to Extend Your PPF Account

To widen your PPF relationship portion continuing contributions, you indispensable taxable an exertion to the slope oregon station bureau wherever your relationship is held. This exertion should beryllium submitted wrong 1 twelvemonth of the maturity date. You’ll besides request to implicit a signifier for the extension, which indispensable beryllium submitted astatine the aforesaid subdivision wherever your PPF relationship was opened.